international mktg report

8/3/2019 International Mktg Report

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International

MarketingAn Introduction

By:

Arciaga, Renier John

Fuentes, Rodney JudeMahidlawon, Jessica KimMalingin, Lovely

Tan, Brigette


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What is InternationalMarketing??

}The performance of business

activities that direct the flow ofcompanys goods and services

to consumers or users in more

than one nation for a profit(Cateord and Graham, 2004).


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Marketing activities takeplace in more than onecountry.

Complexity anddiversity can be found

in InternationalMarketing Operations


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}Deals with controllable

and uncontrollableelements.


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Domestic vs. InternationalMarketing

Domestic

} Smaller arena

} Specified needs

} Low stakes/risks

} One familiar market

} Deals with oneuncontrollable

elements

International

} Bigger arena} More Complex

needs

} Higher stakes/risks

} Diverse and

unfamiliar markets} Deals with two

uncontrollableelements


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wsd


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Differences Between Domesticand International Marketing

}Consumer

}Purchasing Power}Product and Packaging

}Currency

}

Payment Terms}Physical Distribution

}Language

}Communication


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Phases ofInternational

Marketing


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1.Domestic Exporter

- Operates exclusively within a single country

2. Regional Exporter

- Operates w/in a geographically defined region

3. Exporter

- Finished goods distributed outside home region


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4. International Exporter

- Both finished goods and intermediate products

are exported outside home region.

5. International to Global Exporter

- Runs independently and mainly self-sufficientsubsidiaries in a range of countries.

6. Global Exporter

- Highly decentralized organization operatingacross a broad range of countries.


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Five Distinct but OverlappingPhases of Intl. Mktg.

}No Direct Marketing

}

Infrequent Foreign Marketing} Regular Foreign Marketing

} International Marketing

}Global Marketing


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Reasons Why

Companies

Venture intoInternational

Marketing


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Internal Reasons

} To utilize the firms excess capacity

}

To take advantage of higher purchasingpower in overseas markets

} To take advantage of the governmentsexport promotion drive

} To find other markets as the firms productexperiences a decline in sales in thehome market


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Internal Reasons

} To find other markets as stiff competitionin the domestic or home market has

reduced the firms sales

} To diversify the firms power base indifferent geographic locations


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External Reasons

} To take advantage of tax incentives andpromotional packages offered by certain

countries to foreign investors} To take advantage of low labor and raw

material costs in foreign countries

} To take advantage of access to new

technologies in foreign countries} To take advantage of the governments

import promotion drive


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Factors

InfluencingInternational

Marketing


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Controllable Factors

} Product

} Price

} Promotion

} Place

} Physical distribution

} Presentation


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Uncontrollable Factors forDomestic

}Competition

} Political Forces

} Economic Situation


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Uncontrollable Factors ForInternational Marketing

}Cultural forces

}Distribution

}Geography and infrastructure

} Level of technology

} Economic forces

} Political forces} competition


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Entry Modes inInternational

Marketing


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There are different modes by

which a company can enterforeign markets. These are

franchising, licensing,manufacturing, management

contracts and exporting


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Franchising

} This method of distributing products andservices is ideal for people who want to

expand their business but do not want tomanage it themselves.


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Licensing

} Entails only a part of a whole franchisingaspect.

}A licensee may only get the patent,trademark or the manufacturing know-how of the company

} Licensee has to pay royalties due the

parent company


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Manufacturing

} Lumped into several categories, certaincompanies are mostly concerned with

the manufacture of products. They serveas satellites or extensions

} It may form into following:

Assembly plant

Contract ManufacturingJoint Venture

Wholly owned plant


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Management Contracts

} Production is irrelevant to the mothercompanies

}Merely supply management know-how toa foreign company that is willing to supplythe capital to them.


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Exporting

} Refers to the marketing of goods andservices produced in one country into

another country.

}Allows a company to enter foreignmarkets with a minimum change inproduct lines, company organizations,

investment or company mission.


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Thank You For Listening

international mktg report

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